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Hsbc mutual fund common application form equity with kim
1. Common Key Information Memorandum for Equity Schemes
HSBC Equity Fund (HEF) Continuous Offer of Units at NAV based prices
An open-ended diversified Equity Scheme
This Common Key Information Memorandum (KIM) sets forth
HSBC India Opportunities Fund (HIOF)
An open-ended flexi-cap Equity Scheme the information, which a prospective investor ought to know
before investing. For further details of the Scheme(s) / Mutual
HSBC Midcap Equity Fund (HMEF) Fund, due diligence certificate by the AMC, Key Personnel,
An open-ended diversified Equity Scheme
investors’ rights & services, risk factors, penalties & pending
HSBC Progressive Themes Fund (HPTF) litigations etc. investors should, before investment, refer to
An open-ended flexi-theme Equity Scheme the Combined Scheme Information Document, Statement of
Additional Information and Addenda thereto available free of
HSBC Dynamic Fund (HDF)
An open-ended Scheme cost at any of the Investor Service Centres or distributors
or from the website of the AMC, www.assetmanagement.
HSBC Tax Saver Equity Fund (HTSF)
An open-ended Equity Linked Savings Scheme (ELSS) hsbc.com/in. The particulars of the Scheme(s) have been
prepared in accordance with the Securities and Exchange
HSBC Emerging Markets Fund (HEMF) Board of India (Mutual Funds) Regulations, 1996, as amended
An open-ended Scheme
till date and filed with Securities and Exchange Board of
HSBC Unique Opportunities Fund (HUOF) India (SEBI). The Units being offered for public subscription
An open-ended Equity Scheme
have not been approved or disapproved by SEBI nor has
HSBC Small Cap Fund (HSCF) SEBI certified the accuracy or adequacy of this KIM.
An open-ended Equity Scheme
HSBC Brazil Fund (HBF) This Common Key Information Memorandum is dated
An open-ended Fund of Funds Scheme
June 28, 2011.
Sponsor: Trustee: Asset Management Company:
HSBC Securities and Capital Markets Board of Trustees HSBC Asset Management (India) Private Limited
(India) Private Limited Office: 314, D. N. Road, Corp. & Regd. Office: 314, D. N. Road,
Regd. Office: 52/60, Mahatma Gandhi Road, Fort, Mumbai 400 001, India Fort, Mumbai 400 001, India
Fort, Mumbai 400 001, India.
Visit us at : www.assetmanagement.hsbc.com/in E mail id: hsbcmf@hsbc.co.in
2. COMPARISON BETWEEN THE SCHEMES
Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as
Name of Folios on 31
as on May,
31 May, 2011 (Rs.
2011 in crores)
HSBC Equity To generate long-term capital growth Instruments Indicative Allocation Risk HEF seeks to invest primarily 82,853 902.12
Fund from an actively managed portfolio of (% of Net Assets) Profile into large cap Indian equity
equity and equity related securities. stocks which makes the
Minimum Maximum Scheme different from other
Equities & Equity related 65% 100% High existing open-ended equity
securities Schemes of HSBC Mutual
Fund.
Debt securities & Money Market 0% 35% Low to
instruments (including Cash & Medium
Cash equivalents)
If the Scheme decides to invest in securitised debt, it is the intention of
the Investment Manager that such investments will not normally exceed
30% of the corpus of the Scheme and if the Scheme decides to invest
in ADRs/GDRs issued by Indian Companies and foreign securities in line
with SEBI stipulation, it is the intention of the Investment Manager that
such investments will not, normally exceed 30% of the assets of the
Scheme. The scheme shall have derivative exposure as per the SEBI
Guidelines issued from time to time.
HSBC India To seek long term capital growth Instruments Indicative Allocation Risk HIOF seeks to invest primarily 21,089 179.31
Opportunities through investments across all market (% of Net Assets) Profile into Indian equity stocks with
Fund capitalisations, including small, mid and no market capitalisation or
large cap stocks. The fund aims to be Minimum Maximum other biases which makes the
predominantly invested in equity and Equities & Equity related securities 65% 100% High Scheme different from other
equity related securities. However, it existing open-ended equity
could move a significant portion of its Schemes of HSBC Mutual
Debt securities & Money Market 0% 35% Low to
assets towards fixed income securities Fund.
instruments (including Cash & Medium
if the fund manager becomes negative Cash equivalents)
on equity markets.
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally
exceed 30% of the corpus of the Scheme and if the Scheme decides to
invest in ADRs/GDRs issued by Indian Companies and foreign securities
in line with SEBI stipulation, it is the intention of the Investment
Manager that such investments will not, normally exceed 30% of the
assets of the Scheme. The scheme shall have derivative exposure as
per the SEBI Guidelines issued from time to time.
HSBC To generate long term capital growth Instruments Indicative Allocation Risk HPTF is a thematic equity 65,277 211.56
Progressive from an actively managed portfolio of (% of Net Assets) Profile Scheme which uses a flexi-
Themes equity and equity related securities by theme approach in selection of
investing primarily in sectors, areas Minimum Maximum areas in which to invest.
Fund
and themes that play an important Equities & Equity related 65% 100% High
role in, and / or benefit from, India's securities
progress, reform process and economic
Debt securities & Money Market 0% 35% Low to
development.
instruments (including Cash & Medium
Cash equivalents)
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally
exceed 30% of the corpus of the Scheme and if the Scheme decides to
invest in ADRs/GDRs issued by Indian Companies and foreign securities
in line with SEBI stipulation, it is the intention of the Investment
Manager that such investments will not, normally exceed 30% of the
assets of the Scheme. The scheme shall have derivative exposure as
per the SEBI Guidelines issued from time to time.
HSBC To generate long term capital growth Instruments Indicative Allocation Risk HMEF seeks to invest primarily 23,378 134.19
Midcap from an actively managed portfolio of (% of Net Assets) Profile into mid cap Indian equity
Equity Fund equity and equity related securities stocks which makes the
primarily being Midcap stocks. Minimum Maximum Scheme different from other
However, it could move a portion of its Equities & equity related securities 65% 100% High existing open-ended equity
assets towards fixed income securities of companies whose market Schemes of HSBC Mutual
if the fund manager becomes negative capitalization is Rs. 75 crores or Fund.
on the Indian equity markets. more but does not exceed the
market capitalization of the largest
constituent of the BSE Midcap Index
at the point of investment on a full
market capitalisation basis
Other equities & equity related 0% 35% High
securities
Debt and money market 0% 35% Low to
instruments (including cash and Medium
money at call)
Under normal circumstances, the Scheme shall invest at least 65% of
the net assets under the Scheme in Equity and Equity related Securities
which fall within the definition of midcap companies. If the Scheme
decides to invest in securitised debt, it is the intention of the Investment
Manager that such investments will not normally exceed 30% of the
corpus of the Scheme and if the Scheme decides to invest in ADRs/
GDRs issued by Indian Companies and foreign securities in line with
SEBI stipulation, it is the intention of the Investment Manager that
such investments will not, normally exceed 30% of the assets of the
Scheme. The scheme shall have derivative exposure as per the SEBI
Guidelines issued from time to time.
2
3. Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as
Name of Folios on 31
as on May,
31 May, 2011 (Rs.
2011 in crores)
HSBC To provide long term capital appreciation
Instruments Indicative Allocation Risk
HDF seeks to normally invest 27,910 104.75
Dynamic by allocating funds in equity and equity in equity, with an aim to
(% of Net Assets) Profile
Fund related instruments. It also has the capitalise on the potential
flexibility to move, entirely if required, Minimum Maximum upside in equity markets but
into debt instruments in times that can react quickly to a negative
the view on equity markets seems Equities & Equity related 0% 100% High market by moving 100 per
instruments
negative. cent of its assets into debt
Debt & money market 0% 100% Low to instruments, with an aim to
instruments Medium limit the downside risk, in the
event that the fund manager is
If the Scheme decides to invest in securitised debt, it is the intention
bearish on the market.
of the Investment Manager that such investments will not normally
exceed 30% of the corpus of the Scheme and if the Scheme decides to
invest in ADRs/GDRs and foreign securities in line with SEBI stipulation,
it is the intention of the Investment Manager that such investments
will not, normally exceed 50% of the assets of the Scheme. No
investments shall be made in foreign securitised debt. The net notional
exposure to derivative in HDF shall not be more than 75% of the net
assets. Investments in derivatives would be in accordance with the
SEBI Regulations.
HSBC To provide long term capital appreciation
Instruments Indicative Allocation Risk
HEMF is the only overseas 8,075 56.69
Emerging by investing in India and in the emerging investing Scheme which
(% of Net Assets) Profile
Markets markets, in equity and equity related invests into units of Overseas
instruments, share classes and units/ Minimum Maximum Mutual Funds.
Fund
securities issued by overseas mutual
funds or unit trusts. The fund may also Units/securities issued by 80% 100% Medium
overseas mutual funds or unit to High
invest a limited proportion in debt and
trusts of emerging markets*
money market instruments.
Domestic Debt, Money Market 0% 20% Low to
instruments (including CBLO Medium
& reverse repo) and units of
domestic mutual funds.
* Currently HSBC GEM Equity Fund is envisaged to be used for
investing in the emerging markets however, HEMF could use any
other global fund of HSBC Group to invest in emerging markets.
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally
exceed 10% of the corpus of the Scheme. HEMF will not invest in
underlying global scheme which invests more than 10% of their net
assets in unlisted equity shares or equity related instruments.
HSBC Tax To provide long term capital appreciation Instruments Indicative Allocation Risk HTSF is the only Scheme 81,574 237.11
Saver Equity by investing in a diversified portfolio of (% of Net Assets) Profile launched as an Equity
Fund equity & equity related instruments Linked Savings Scheme as
of companies across various sectors Minimum Maximum per the Notifications dated
and industries, with no capitalization Equities & Equity related 80% 100% High 3 November, 2005 and 13
bias. The Fund may also invest in fixed securities D e c e m b e r, 2 0 0 5 i s s u e d
income securities. Debt, Money Market 0% 20% Low to by the Department of
instruments and Cash Medium Economic Affairs, Ministry
of Finance Government of
If the Scheme decides to invest in securitised debt, it is the intention
India or such other Scheme
of the Investment Manager that such investments will not normally
as the Central Government
exceed 20% of the corpus of the Scheme and if the Scheme decides
may, by notification in the
to invest in ADRs/GDRs issued by Indian Companies, it is the intention
Official Gazette, specify
of the Investment Manager that such investments will not, normally
under section 80C of the
exceed 20% of the assets of the Scheme. If the Scheme decides to
Income Tax Act, 1961. The
invest in foreign securities, it is the intention of the Investment Manager
investors in the Scheme are
that such investments will not normally exceed 20% of the corpus of
entitled to deductions of the
the Scheme. The exposure to derivative instruments shall be as per the
amount invested in units of
SEBI and applicable Guidelines issued from time to time.
the Scheme, subject to a
maximum of Rs. 1,00,000,
under and in terms of Section
80C (2) (xiii) of the Income Tax
Act, 1961.
HSBC To provide long-term capital growth
Instruments Indicative Allocation Risk
HUOF seeks to invest into 23,576 87.42
Unique from a diversified portfolio of equity stocks of companies facing
(% of Net Assets) Profile
Opportunities and equity related instruments. The "out of ordinary" conditions
focus would be to invest in stocks Minimum Maximum but have potential for long
Fund
of companies facing "out-of-ordinary" term growth. The Scheme
conditions. Equities & Equity related 65% 100% High aims to invest in companies
instruments
that have strong fundamentals
Debt, Money Market 0% 35% Low to and possess growth potential
instruments (including Cash & Medium but are either temporarily
Cash equivalents) undervalued or are likely to
If the Scheme decides to invest in securitised debt, it is the intention benefit from unlocking of value
of the Investment Manager that such investments will not normally from the culmination of these
exceed 35% of the corpus of the Scheme and if the Scheme decides 'out-of-ordinary' situations that
to invest in ADRs/GDRs issued by Indian Companies, it is the intention are usually non-recurring and
of the Investment Manager that such investments will not, normally outside the ordinary course
exceed 50% of the assets of the Scheme. The exposure to derivative of business
instruments shall be as per the SEBI Guidelines issued from time
to time.
3
4. Scheme Investment Objective Asset Allocation Pattern Product Differentiation Number AUM as
Name of Folios on 31
as on May,
31 May, 2011 (Rs.
2011 in crores)
HSBC Small To provide long-term capital appreciation Instruments Indicative Allocation Risk HSCF seeks to invest primarily 7,984 30.86
Cap Fund primarily from a diversified portfolio of into small cap Indian equity
(% of Net Assets) Profile
equity and equity related instruments stocks as defined under its
of small cap companies. Minimum Maximum asset allocation.
Equity and equity related 65% 100% High
instruments of Small Cap
Companies*
Equity and equity related 0% 35% High
instruments of other than Small
Cap Companies*
Debt and money market 0% 35% Low to
instruments Medium
* Small Cap Companies are defined as the companies with the
market capitalization which is 1) lower than or equal to the market
capitalization of the stock in the BSE Small Cap Index with the
largest market capitalization and 2) higher than or equal to the
market capitalization of the stock in the BSE Small Cap Index with
the smallest market capitalization.
If the Scheme decides to invest in securitised debt, it is the intention
of the Investment Manager that such investments will not normally
exceed 35% of the corpus of the Scheme and if the Scheme decides to
invest in ADRs/GDRs and foreign securities in line with SEBI stipulation,
it is the intention of the Investment Manager that such investments
will not, normally exceed 35% of the assets of the Scheme, however,
such investments will be made provided they meet the Investment
Objective of the Scheme. No investments shall be made in foreign
securitized debt. The net notional exposure to derivative in HSCF shall
not be more than 75% of the net assets. Investments in derivatives
would be in accordance with the SEBI Regulations.
HSBC Brazil To provide long term capital appreciation Instruments Indicative Allocation Risk HBF will invest into HGIF Brazil 6,646 312.55
Fund by investing predominantly in units/ Equity Fund, which in turn will
(% of Net Assets) Profile
shares of HSBC Global Investment invest into stocks listed in the
Funds (HGIF) Brazil Equity Fund. The Minimum Maximum Brazilian equity markets. It is
Scheme may, at the discretion of the Units/shares of HGIF Brazil 95% 100% Medium different from HSBC Emerging
Investment Manager, also invest in the Equity Fund to High Markets Fund (HEMF), an
units of other similar overseas mutual existing open-ended overseas
fund schemes, which may constitute Money Market instruments 0% 5% Low to investing scheme which
a significant part of its corpus. The (including CBLO & reverse repo) Medium invests into equities of various
Scheme may also invest a certain and / or units of liquid mutual fund countries which are classified
proportion of its corpus in money schemes as emerging markets.
market instruments and/or units of
The Scheme will not invest in the underlying scheme(s) which invest
liquid mutual fund schemes, in order
more than 10% of their net assets in unlisted equity shares or equity
to meet liquidity requirements from
related instruments.
time to time.
Features HSBC EQUITY FUND HSBC INDIA OPPORTUNITIES FUND HSBC PROGRESSIVE THEMES FUND
Type An open-ended diversified Equity Scheme An open-ended flexi-cap Equity Scheme An open-ended flexi-theme Equity Scheme
Investment Objective To generate long-term capital growth from an actively To seek long term capital growth through investments To generate long term capital growth from an actively
managed portfolio of equity and equity related securities. across all market capitalisations, including small, mid managed portfolio of equity and equity related securities by
and large cap stocks. The fund aims to be predominantly investing primarily in sectors, areas and themes that play
invested in equity and equity related securities. However, it an important role in, and / or benefit from, India's progress,
could move a significant portion of its assets towards fixed reform process and economic development.
income securities if the fund manager becomes negative
on equity markets.
Date of Inception 10 December, 2002 24 February, 2004 23 February, 2006
Asset Allocation Please refer to page 2 Please refer to page 2 Please refer to page 2
Pattern
Investment Strategy The aim of the HSBC Equity Fund is to deliver above- The aim of the HSBC India Opportunities Fund is to seek The aim of the HSBC Progressive Themes Fund is to
benchmark returns by providing long-term capital growth aggressive growth and deliver above-benchmark returns by deliver above benchmark returns by providing long-term
from an actively managed portfolio, mainly comprising providing long-term capital growth from an actively managed capital growth from an actively managed portfolio, primarily
companies registered in and/or listed on a regulated market portfolio, mainly comprising a judicious mix of small, mid comprising of stocks of companies in areas/sectors that
of India. Income is not a primary consideration in the and large cap stocks. Income is not a primary consideration play an important role in India's economic development. The
investment policies of the HSBC Equity Fund. The Scheme in the investment policies of the HSBC India Opportunities sectors and areas will change with changes in the economy.
will invest across a range of market capitalisations with a Fund. The Scheme aims to be predominantly invested in
preference for medium and large companies. equity and equity related securities. However, it could move
a significant portion of its assets towards fixed income
securities if the fund becomes negative on equity markets.
Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read Combined SID carefully for details on risk factors before
investment. Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes".
Risk Mitigation Risks & Description Risk Mitigants / Management Strategy
Factors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research
Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk
Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses
Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity
Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors
Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor
Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events
Mitigated as instruments are normally exchange traded with readily available data
Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive research
4
5. Features HSBC EQUITY FUND HSBC INDIA OPPORTUNITIES FUND HSBC PROGRESSIVE THEMES FUND
Plan / Options Options : 1) Growth 2) Dividend
Sub-Options Dividend Payout and Dividend Reinvestment Option
Applicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
for ongoing the day of receipt of application will be applicable.
Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
and Redemptions the next Business Day will be applicable.
(including switch ins Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV
/ switch outs) of day on which the cheque or demand draft is credited will be applicable.
Load Structure Entry Load* : Nil. Exit Load : 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.
(including SIP/STP
# No load in case of switches between Equity Schemes. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also be charged on
where applicable)# investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit loads set forth above is subject to change at
the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under Common Features of all Schemes on page 11. *In terms
of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission
shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributors.
Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.
Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.
Minimum Application / Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafter Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereafter
Repurchase / Redemption : Rs. 1,000/- and multiples of Re. 1/- thereafter
Additional Amount+ + The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined
SID/Addendums thereto for further details.
Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.
Redemption Request The Fund would endeavour to dispatch redemption proceeds within 3 Business Days under normal circumstances on receiving a valid request.
Fund Manager Jitendra Sriram Jitendra Sriram Dhiraj Sachdev & Jitendra Sriram
Niren Parekh and Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars
issued from time to time.
Benchmark Index BSE 200 BSE 500 BSE 200
Dividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those Unitholders
who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment option.
However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon the
distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of the
Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly
paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders
on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.
Performance of the Scheme Returns Benchmark Returns Scheme Returns Benchmark Returns Scheme Returns Benchmark Returns
Scheme* Last 1 year 8.65% 6.94% Last 1 year 10.77% 6.66% Last 1 year -9.00% 6.94%
Compounded Last 3 years 2.91% 4.13% Last 3 years 1.89% 3.76% Last 3 years -8.49% 4.13%
Annualised Last 5 years 12.90% 12.27% Last 5 years 9.01% 11.70% Last 5 years 2.43% 12.27%
Returns ^
(As on 31 Since Inception 31.53% 23.49% Since Inception 18.69% 17.40% Since Inception 2.72% 10.79%
May, 2011) Absolute Returns Absolute Returns Absolute Returns
HEF Growth BSE 200 HIOF Growth BSE 500 HPTF - Growth BSE 200
92.87 120%
100% 100%
96.38 92.87
80% 100%
58.42 80%
60% 80% 62.24 60% 55.85
40% 30.24 24.13 60%
40%
20% 10.42 8.15 0.79 11.40 10.20 40% 24.25 23.92 24.13
16.18 16.00 9.71 20% 10.20
0% 20% 11.75 7.48 -2.23 -2.04 -8.15 -2.57 -1.40 3.94
0%
-20% -1.40 0%
-20% -10.05
-20%
Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 -
Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07 Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07
*Past performance may or may not be sustained in the future. ^ Returns for 1 year & above are Compounded Annualised.
Calculations are based on Growth Option NAVs. Since inception returns are calculated on Rs. 10 invested at inception.
Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011
Total Expenses (Rs.) : 230,686,455.73 Total Expenses (Rs.) : 54,591,807.81 Tota l Expenses (Rs.) : 73,970,431.57
% to Net Assets : 2.01 % to Net Assets : 2.36 % to Net Assets : 2.33
First Rs. 100 crores % of the average daily net assets : 2.50 Next Rs. 300 crores % of the average daily net assets : 2.25
Next Rs. 300 crores % of the average daily net assets : 2.00 Balance : 1.75
Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUND
Type An open-ended diversified equity Scheme An open-ended Scheme An open-ended Scheme
Investment To generate long term capital growth from an actively To provide long term capital appreciation by allocating To provide long term capital appreciation by investing in
Objective managed portfolio of equity and equity related funds in equity and equity related instruments. It also India and in the emerging markets, in equity and equity
securities primarily being Midcap stocks. However, has the flexibility to move, entirely if required, into related instruments, share classes and units/securities
it could move a portion of its assets towards fixed debt instruments in times that the view on equity issued by overseas mutual funds or unit trusts. The
income securities if the fund manager becomes markets seems negative. fund may also invest a limited proportion in debt and
negative on the Indian equity markets. money market instruments.
Date of Inception 19 May, 2005 24 September, 2007 17 March, 2008
Asset Allocation Please refer to page 2 Please refer to page 3 Please refer to page 3
Pattern
5
6. Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUND
Investment Strategy The aim of the HSBC Midcap Equity Fund is to deliver The Scheme has the flexibility to allocate assets The aim of the HSBC Emerging Markets Fund is
above-benchmark returns by providing long-term to both equity and debt instruments. It will hold a to provide long term capital appreciation from an
capital growth from an actively managed portfolio, mix of securities-primarily equity and equity related actively managed portfolio, primarily comprising of a
primarily comprising of midcap stocks. Income is not instruments. This allocation will be steadily monitored mix of small, mid and large cap stocks. Income is not
a primary consideration in the investment policies of and updated as and when the market movements a primary consideration in the investment policies of
the HSBC Midcap Equity Fund. The Scheme aims demand it, a switch would be made. This product the HSBC Emerging Markets Fund. The Scheme aims
to be predominantly invested in midcap equity and offers a lower risk alternative to pure equity offerings to be predominantly invested in equity and equity
equity related securities and also invest in small cap as it has the flexibility to move, entirely if required, related securities. The Fund may also invest in fixed
equity and equity related securities. However, it could into debt instruments in times that the view on equity income securities. HEMF may invest in the Emerging
move a portion of its assets towards fixed income markets seems negative. The relative balance of Markets through overseas funds or overseas equity
securities if the fund becomes cautious or negative these securities can be periodically changed to take and equity related securities share classes / Units of
on equity markets. advantage of phases in the economic cycle. The fund equity Fund as permitted by SEBI. HEMF proposes to
would switch over from one asset-class combination invest in the overseas market by investing in units /
to another, looking towards more aggressive growth securities issued by overseas mutual funds managed
oriented stocks when the market is bullish and vice by HSBC globally, for example HSBC GEM Equity Fund
versa. Thus, the scheme endeavours to achieve (GEM) etc. The Fund may undertake currency hedge
the ideal asset allocation to make the most of the to protect the investors from the risk associated with
markets and save opportunity costs for the investor. movement in currency markets.
The fund will endeavour to provide long-term growth
of principal and income. Thus, it aims to perform even
in a distressed market scenario.
Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read the Combined SID carefully for details on risk factors before investment.
Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes"
Risk Mitigation Risks & Description Risk Mitigants / Management Strategy
Factors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research
Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk
Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses
Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity
Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors
Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor
Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events Mitigated as
instruments are normally exchange traded with readily available data
Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive research
Plan / Options Options : 1) Growth 2) Dividend
Sub-Options Dividend Payout and Dividend Reinvestment Option
Applicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
for ongoing the day of receipt of application will be applicable.
Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
and Redemptions the next Business Day will be applicable.
(including switch Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV
ins / switch outs) of day on which the cheque or demand draft is credited will be applicable.
Load Structure Entry Load* : Nil.
(including SIP/STP Exit Load : 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.
where applicable)#
# No load in case of switches between Equity Schemes. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual Fund shall also
be charged on investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit loads set forth
above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under Common
Features of all Schemes on page 11. *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the
Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors
assessment of various factors including the service rendered by the distributors.
Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.
Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.
Minimum Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafter Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereafter
Application / Repurchase : Rs. 1,000/- and multiples of Re. 1/- thereafter
Repurchase / + The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined SID/
Additional Amount+ Addendums thereto for further details.
Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.
Redemption Request The Fund would endeavour to dispatch redemption proceeds within 3 Business Days under normal The Fund would endeavour to dispatch redemption
circumstances on receiving a valid request. proceeds within 7 Business Days under normal
circumstances on receiving a valid request.
Fund Manager Dhiraj Sachdev Jitendra Sriram (for Equity portion) and Niren Parekh & Gaurav Mehrotra
Sanjay Shah (for Fixed Income portion)
Niren Parekh & Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars
issued from time to time.
Benchmark Index BSE Midcap Index BSE 200 MSCI Emerging Market Index
Dividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those
Unitholders who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment
option. However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon
the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of
the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly
paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders
on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.
6
7. Features HSBC MIDCAP EQUITY FUND HSBC DYNAMIC FUND HSBC EMERGING MARKETS FUND
Performance of the Scheme Returns Benchmark Returns Scheme Benchmark Scheme Benchmark
Scheme* Last 1 year -8.46% 1.10% Returns Returns Returns Returns
Compounded Last 3 years -2.73% 0.73% Last 1 year 8.64% 6.94% Last 1 year 21.99% 17.21%
Annualised Last 5 years 2.83% 6.46% Last 3 years -0.08% 4.13% Last 3 years -2.65% -1.38%
Returns ^ Since Inception 11.67% 13.33% Since Inception 0.42% 2.91% Since Inception 1.79% 2.9%
(As on 31
Absolute Returns Absolute Returns Absolute Returns
May, 2011)
HMEF - Growth BSE Midcap Index HDF - Growth BSE 200 HEMF - Growth BSE 200
150% 130.23
125% 100% 92.87 MSCI Emerging Market Index
116.01
100% 80% 100%
75% 60% 51.97 80%
50%
40% 60% 48.85 54.67
20% 9.27 8.15 40%
13.51 19.38 0.66 -1.40 -6.68
25% 5.15
0.99% 0% 20% 13.48 10.81
0% 1.73 3.69 0.30 5.12
-20% -4.12 -3.34 0%
-25% -9.93% -7.39 -8.62 -2.47
Apr. 10 - Apr. 09 - Apr. 08 - Since Incep-
Apr. 10 - Apr. 09 - Apr. 08 - Since Mar. 11 Mar. 10 Mar. 09 tion to Mar. 08
Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Apr. 06 - Mar. 11 Mar. 10 Mar. 09 Inception
to Mar. 08
Mar. 11 Mar. 10 Mar. 09 Mar. 08 Mar. 07
*Past performance may or may not be sustained in the future. ^ Returns for 1 year & above are Compounded Annualised.
Calculations are based on Growth Option NAVs. Since inception returns are calculated on Rs. 10 invested at inception.
Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011
Total Expenses (Rs.) : 40,629,876.50 Total Expenses (Rs.) : 39,898,782.56 Total Expenses (Rs.) : 7,489,370.48
% to Net Assets : 2.36 % to Net Assets : 2.41 % to Net Assets : 1.10
First Rs. 100 crores % of the average daily net assets : 2.50 Total expenses of the Scheme shall consist of:
Next Rs. 300 crores % of the average daily net assets : 2.25 (a) management fees not exceeding 0.75% of the daily
Next Rs. 300 crores % of the average daily net assets : 2.00 average net assets of the Scheme; (b) other expenses
relating to administration of the Scheme; and (c) the
Balance : 1.75 weighted average of the total expense ratio of the
underlying scheme(s) into which the Scheme invests.
Provided that the sum total of a), b) and c) shall not
exceed 2.50% of the daily average net assets of HEMF.
Features HSBC TAX SAVER EQUITY FUND HSBC UNIQUE OPPORTUNITIES FUND HSBC SMALL CAP FUND
Type An open-ended Equity Linked Savings Scheme An open-ended equity Scheme An open-ended equity Scheme
Investment To provide long term capital appreciation by investing To provide long-term capital growth from a diversified To provide long-term capital appreciation primarily
Objective in a diversified portfolio of equity & equity related portfolio of equity and equity related instruments. from a diversified portfolio of equity and equity related
instruments of companies across various sectors and The focus would be to invest in stocks of companies instruments of small cap companies.
industries, with no capitalization bias. The Fund may facing "out-of-ordinary" conditions.
also invest in fixed income securities.
Date of Inception 5 January, 2007 21 March, 2007 24 March, 2008
Asset Allocation Please refer to page 3 Please refer to page 3 Please refer to page 4
Pattern
Investment Strategy The aim of the HSBC Tax Saver Equity Fund is The Fund Manager will seek to invest in companies The Fund Manager will endeavour to invest in small
to provide long-term capital appreciation from an that currently operate in "out of ordinary" situations. cap companies that are typically characterized by
actively managed portfolio, primarily comprising of a Out of ordinary situations are event-driven conditions strong fundamentals, high growth potential and
mix of small, mid and large cap stocks. Income is not that render the company undervalued relative to its under-pricing relative to intrinsic value. Small Cap
a primary consideration in the investment policies of long term potential and may, amongst others, include Companies are defined as the companies with the
the HSBC Tax Saver Equity Fund. The Scheme aims (but not be limited to) the following: market capitalization
to be predominantly invested in equity and equity Turnaround/Recovery situations which is :
related securities. The Fund may also invest in fixed
Financial restructurings, distressed debt etc. 1) lower than or equal to the market capitalization
income securities.
Mergers & Acquisitions, Divestments, Spin-Offs, of the stock in the BSE Small Cap Index with the
Demergers, largest market capitalization and
2) higher than or equal to the market capitalization
Out-of-favour industries/sectors
of the stock in the BSE Small Cap Index with the
Employee/Management buyouts smallest market capitalization.
New product/business launches The fund will invest predominantly in equity and equity
Asset plays (companies selling at significant related instuments but may also invest a limited portion
discount to intrinsic value) in debt and money market instruments if the fund
manager has a negative view of the equity market or
Unrecognised growth potential
to maintain liquidity.
Companies likely to benefit from some change in
the economy, industry transformation, new laws /
regulations / technology.
Risk Profile Mutual Fund units involve investment risks including the possible loss of principal. Please read the Combined SID carefully for details on risk factors before investment.
Please refer to page 10 for the summarized scheme specific risk factors under "Common Features for all Schemes"
Risk Mitigation Risks & Description Risk Mitigants / Management Strategy
Factors Market Risk : Value of holdings may fall as a result of market movements Investment approach supported by comprehensive research
Currency Risk : Risk on account of exchange rate fluctuations Investment manager could use (there is no obligation) derivatives to hedge currency risk
Country Risk : Risk on account of exposure to a single country Investment universe is carefully selected to include high quality businesses
Liquidity Risk : High impact costs Robust process for periodic monitoring of liquidity
Concentration Risk : Risk on account of high exposure to a risk class Investment across market capitalization spectrum and industries/sectors
Legal / Tax / Regulatory Risk : Risk on account of changes in regulations This risk is something dependent upon a future event and will be clearly communicated to the investor
Event Risk : Price risk as a result of company or sector specific event Usage of derivatives : Hedge portfolios if required, in case of predictable events Mitigated as
instruments are normally exchange traded with readily available data
Valuation Risk : Risk on account of incorrect valuation Investment approach supported by comprehensive research
7
8. Features HSBC TAX SAVER EQUITY FUND HSBC UNIQUE OPPORTUNITIES FUND HSBC SMALL CAP FUND
Plan / Options Options : 1) Growth 2) Dividend
Sub-Op tions Dividend Payout Option Dividend Payout & Dividend Reinvestment Option Dividend Payout & Dividend Reinvestment Option
Applicable NAV Where the valid application is received upto 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
for ongoing the day of receipt of application will be applicable.
Subscriptions Where the valid application is received after 3.00 p.m. with a local cheque or demand draft payable at par at the place where it is received, the closing NAV of
and Redemptions the next Business Day will be applicable.
(including switch ins Where the valid application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received, the closing NAV
/ switch outs) of day on which the cheque or demand draft is credited will be applicable.
Load Structure Entry Load* : Nil Entry Load* : Nil.
(including SIP/STP Exit Load : Nil Exit Load: 1% if redeemed / switched out within 1 year from the date of investment; otherwise Nil.
where applicable)#
# No load in case of switches between the Equity Schemes of HSBC Mutual Fund. The applicable exit loads (if any) at the time of allotment of the Schemes of
HSBC Mutual Fund shall be charged on investments made by all investors. The applicable exit loads (if any) at the time of allotment of the Schemes of HSBC Mutual
Fund shall also be charged on investments made by all investors. No exit load shall be charged for units allotted under bonus/dividend reinvestment option. The exit
loads set forth above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Please refer "Load Structure" under
Common Features of all Schemes on page 11. *In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged
by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the
investors assessment of various factors including the service rendered by the distributors.
Waiver of load for Pursuant to SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, no Entry Load will be charged for all Mutual Fund Schemes.
Direct Application Therefore, the procedure for Waiver of Load for Direct Applications is no longer applicable.
Minimum Purchase : Rs. 500/- Purchase : Rs. 10,000/- and multiples of Re. 1/- thereafter
Application / Additional Purchase : In multiples of Rs. 500/- Additional Purchase : Rs. 1,000/- and multiples of Re. 1/- thereof
Repurchase / thereafter. Redemption : Rs. 1,000/- and multiples of Re. 1/- thereof
Additional Amount+ Repurchase : Rs. 500/- and multiples of
Rs. 500/- thereof.
+ The requirement of minimum subscription amount will not be applicable in case of SIP for scheme(s) where SIP facility is available. Refer to the Combined SID/
Addendums thereto for further details.
Despatch of Within 10 working days of the receipt of the valid redemption request at the Official Points of Acceptance of Transactions of the Registrar and the AMC.
Redemption The Fund would endeavour to dispatch redemption proceeds within 3 Business Days on receiving a valid request under normal circumstances.
Request
Fund Manager Jitendra Sriram & Aditya Khemani Jitendra Sriram Dhiraj Sachdev
Niren Parekh & Gaurav Mehrotra will be the dedicated Fund Manager for making overseas investments as permitted under the Regulations, guidelines and circulars
issued from time to time.
Benchmark Index BSE 200 BSE 200 BSE Small Cap Index
Dividend Policy Declaration of dividend is subject to the availability of distributable surplus. Such dividends if declared will be paid under normal circumstances, only to those
Unitholders who have opted for Dividend sub-options with specified sub-options. Further, no exit load shall be charged for units allotted under dividend reinvestment
option. However, it must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter alia, depend upon
the distributable surplus of the Scheme. The Trustees reserve the right of dividend declaration and to change the frequency, date of declaration and the decision of
the Trustees in this regard shall be final. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that the dividend will be regularly
paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders
on the notified record date. The dividend will be at such rate as may be decided by the AMC in consultation with the Trustees.
Performance of the Scheme Benchmark Scheme Benchmark Scheme Returns Benchmark
Scheme* Returns Returns Returns Returns Returns
Compounded Last 1 year 5.88% 6.94% Last 1 year 7.22% 6.94% Last 1 year -7.06% -3.64%
Annualised
Returns ^ Last 3 years 8.69% 4.13% Last 3 years -2.24% 4.13% Last 3 years 0.69% 0.42%
(As on 31
Since Inception 8.46% 7.65% Since Inception 1.71% 10.06% Since Inception 1.78% 5.47%
May, 2011)
Absolute Returns Absolute Returns Absolute Returns
HTSF - Growth BSE 200 HUOF - Growth BSE 200 180% HSCF - Growth BSE Small Cap Index
150% 161.73
100% 92.87 100% 92.87 123.83
87.14 120%
80% 80% 79.92
60% 60% 5.55 90%
40% 24.13 40% 24.70 60%
8.15 12.04 9.98 8.15 24.13
20% 5.80 20% 7.48 30% 12.83
-5.90 -6.42 0.37 -3.78 -3.40 -11.85 1.33
0% 0% 0%
-20% -1.77 -1.40 -20% -3.40 -1.40
-30%
Apr. 10 - Apr. 09 - Apr. 08 - Since
Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Since Apr. 10 - Apr. 09 - Apr. 08 - Apr. 07 - Since Mar. 11 Mar. 10 Mar. 09 Inception
Mar. 11 Mar. 10 Mar. 09 Mar. 08 Inception Mar. 11 Mar. 10 Mar. 09 Mar. 08 Inception to Mar. 08
to Mar. 07 to Mar. 07
*Past performance may or may not be sustained in the future.
^ Returns for 1 year & above are Compounded Annualised; Return below 1 year are absolute. Calculations are based on Growth Option NAVs.
Recurring Expenses Actual Expenses for the previous financial year ended March 31, 2011
Total Expenses (Rs.) : 64,412,352.30 Total Expenses (Rs.) : 34,102,932.49 Total Expenses (Rs.) : 13,998,758.06
% to Net Assets : 2.34 % to Net Assets : 2.43 % to Net Assets : 2.48
First Rs. 100 crores % of the average daily net assets : 2.50 Next Rs. 300 crores % of the average daily net assets : 2.25
Next Rs. 300 crores % of the average daily net assets : 2.00 Balance : 1.75
8